Retirement Retirement Planning

If You’ve Saved This Much for Retirement by 40, You’re Doing Better Than the Average American

Find out if you're saving more for retirement than your peers.

By Catherine Collins , Edited by Laura Hohenstein

Updated Sept. 3, 2026

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Being in your 40s has some perks in the workplace. At this point, you've likely reached your higher-earning years, and you have experience in your job. If you've been contributing to your retirement plan, you are likely starting to see the benefits of compound interest. If you feel behind on your retirement savings, the good news is that there's still enough time to save enough for your retirement years.

If you want to know how you compare to others in their 40s, here is the average retirement savings according to Federal Reserve data.

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The average retirement savings for workers in their 40s

One of the best places to find data on average retirement savings is the Federal Reserve's Survey of Consumer Finances. The most recent data comes from 2022 and tracks the average and median retirement savings of different age groups. The data shows that the median retirement account balance for ages 35 to 44 is $45,000, while the average is $141,000.

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Why it's helpful to know the median and mean retirement account balance

It's ideal to look at both the median and the mean of retirement account averages because it could give you a general sense of how people your age are saving. Average retirement account numbers could be skewed by high earners who contribute significantly to their accounts, raising the average. However, the median means that half of retirement accounts are above that amount and half of retirement accounts are below that amount. This is a more realistic view of what the typical person in their 40s has in their retirement accounts.

What is a solid benchmark for retirement savings in your 40s?

According to financial experts at Fidelity, people should have approximately three times their salary saved and invested in their retirement accounts by the time they turn 40. If you have less than this, it doesn't mean that you won't be able to retire. It's more of a benchmark for assessing whether you're on track to fully fund your retirement. The ultimate goal, according to Fidelity, is to have 10 times your salary saved by age 67.

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Your 401(k) balance isn't your only retirement lever

If you have other types of retirement accounts, a pension, or other assets like real estate, you may not need to invest as much as you think in your 401(k). Of course, everyone has their own lifestyle goals and asset allocations. Speaking with a financial planner is the best way to figure out what you need to retire successfully.

To find out your total net worth, add up your assets and then subtract your liabilities, like your mortgage and other debt. Reviewing your net worth is another helpful tool that could help you see your entire financial picture as you near retirement age.

Knowing your retirement numbers is an opportunity to plan

Taking the time to understand your retirement numbers and how they compare to the average retirement account balance for people in your age bracket is an opportunity to plan for the future. When you're in your 40s, you still have time for your contributions to compound and grow. As mentioned, you are also approaching some of your highest earning years, which could be a good opportunity to increase your contributions.

Steps to take if you are behind on retirement savings

If you truly feel like you are behind on your retirement savings, there are a few steps you could take. First, make sure that you are taking advantage of all of your employer benefits, such as investing enough to get the full employer match. Additionally, some employers offer auto-escalation for your 401(k). This allows you to automatically increase your contributions every year. Taking small steps like this, raising your contributions when you can, and avoiding lifestyle inflation could all help you to reach your retirement goals in the coming years.

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An accountant and financial advisor can help you optimize your retirement plan and taxes

If you need help deciphering your employer's retirement plan, understanding how much to contribute to your retirement account, and advice on what type of retirement account to open, work with a financial planner and an accountant. An accountant could help you optimize your taxes today, and a financial planner could map out your future finances in retirement.

Bottom line

If you're in your 40s, there is still time to invest for retirement and overcome any financial mistakes you might have made over the past few years. The first step is understanding your total net worth, the amount in your retirement account, and the financial goals you want to reach by the time you retire. If you're not sure how to reach those goals, reach out to a financial professional who may be able to help.

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Author Details

Catherine Collins

Catherine Collins is a nationally recognized personal finance writer with 15 years of experience who has made 401(k)s her specialty. She covers the policy changes, tax implications, rule updates, and common mistakes that shape how Americans save for retirement, translating Washington proposals and regulatory shifts into practical guidance. Her bylines include U.S. News and World Report, Newsweek, Money, and Entrepreneur.